#CEXvsDEX101

CEX vs DEX: Quick Overview

CEXs (Centralized Exchanges): Platforms like Coinbase or Binance act as middlemen, managing trades and funds. They’re beginner-friendly, offer high liquidity, and provide customer support. However, they require ID verification, charge higher fees, and control your funds (not your keys, not your crypto).

DEXs (Decentralized Exchanges): Platforms like Uniswap or PancakeSwap let you trade directly from your wallet, giving you full control and privacy. They have lower fees, no sign-ups, and access to niche tokens. But they can be less user-friendly, lack customer support, and require technical knowledge.

CEX vs DEX: Key Points

Control: CEX holds your funds; DEX lets you hold them.

Privacy: CEX needs ID; DEX doesn’t.

Ease of Use: CEX is beginner-friendly; DEX needs expertise.

Liquidity: CEX is highly liquid; DEX can have lower liquidity.

Fees: CEX has higher platform fees; DEX has lower fees but gas costs.